Question: Solve it in EXCEL Consider the following cash flows reported in nominal terms (current year prices): Assuming the nominal discount rate is equal to the

Solve it in EXCEL Consider the following cash flows reported in nominal

Solve it in EXCEL

Consider the following cash flows reported in nominal terms (current year prices): Assuming the nominal discount rate is equal to the nominal interest rate. If the inflation rate is 3% and the real interest rate is 5%. Find the following: a) The nominal discount rate is: % b) The nominal net present value is: $ c) The nominal internal rate of return for the project is: % d) If the hurdle rate is 15% the investor should (accept/reject) the project. Provide a detailed reason in your spreadsheet. Provide your answers to 2 decimal places. Provide a detailed explanation in your spreadsheet. Show all working in Excel. Marks will be deducted if you do not explain your answers

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